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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Power and Insurance Businesses Securities Violations

General Electric paid a $200 million penalty to settle U.S. Securities and Exchange Commission (SEC) charges of violating antifraud, reporting, disclosure controls, and accounting controls provisions of the securities laws in regard to its power and insurance businesses. According to the SEC, GE misled investors by describing its GE Power profits without explaining that some of its profits in 2016 and 2017 stemmed from reductions in its prior cost estimates; failed to tell investors that its reported increase in current industrial cash collections was coming at the expense of cash in future years and came primarily from internal receivable sales between GE Power and GE Capital; and from 2015 to 2017 failed to inform investors of the uncertainties resulting from lower estimates of future insurance liabilities at a time of rising costs from long-term health insurance claims.

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of SEC Order
12/9/2020
Contractors Involved Penalty
Total
General Electric $200,000,000
Further Information Released
SEC Order 12/9/2020
SEC Press Release 12/9/2020

Federal Contractor Misconduct Database